ACCT20071 - Term 2: CSR Analysis Report of Woolworths and Coles

This report provides a comprehensive analysis of the Corporate Social Responsibility (CSR) initiatives of Woolworths Group and Coles, two major players in the Australian retail industry. The report begins with an overview of both companies, their founding, market position, and core values, highlighting their commitment to customers, communities, and employees. It delves into the concept of CSR, exploring its definition, importance, and the theories underpinning it, such as stakeholder theory. A literature review examines both the positive and negative impacts of CSR on various stakeholders, including consumers, employees, shareholders, suppliers, and the community. The core of the report compares Woolworths and Coles' CSR strategies, examining specific initiatives related to sustainability, diversity, and community engagement. The report critically evaluates these initiatives, highlighting Woolworths' strengths in sustainable development and human rights, while noting areas where Coles could improve. The analysis draws on sustainability reports and other company publications to assess the effectiveness of CSR activities. The conclusion summarizes the key findings, emphasizing the importance of CSR in the retail sector and the need for companies to actively invest in initiatives that benefit the environment, employees, and society. The report underscores that while both companies engage in CSR, Woolworths demonstrates a more comprehensive and impactful approach.

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Contents
Overview...............................................................................................................................................3
About Woolworths Group.................................................................................................................3
About Coles.......................................................................................................................................3
Literature Review..................................................................................................................................4
What is CSR (Corporate Social Responsibility)....................................................................................4
Positive and Negative Impact of CSR................................................................................................5
Woolworths and Coles CSR comparison...............................................................................................5
CSR of Woolworths Group...............................................................................................................5
CSR of Coles.....................................................................................................................................7
Critical Evaluation..................................................................................................................................8
Literature Review on Positive Impacts and negative impacts................................................................8
Negative Impacts...................................................................................................................................9
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

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Overview
About Woolworths Group
Woolworths Group, founded in 1924, is one of Australia and New Zealand’s leading
retail groups, supporting renowned brands such as Woolworths, Big W, BWS, Dan Murphy’s
and Countdown. Having a headcount of approximately 205000, It is the second largest
company in Australia and New Zealand by revenue. The focus of the company lies in
creating better experiences by working together, for their customers, their communities and
for everyone. “People” are at the heart of everything they do. They believe in compassion,
empathy and harmony amongst their employees. The company shares a strong sense of
belongingness towards its employees and strives to attain their goal through continuous team
work (Woolworth’s Group, 2018).
About Coles
Coles founded in 1914 in Australia and today has 2,386 outlets and employed 100,000
employees all that contribute approximately 80% of Australian market in supermarket
segment. The company provides fresh food, groceries, fuel, financial services and liquor to
20 million customers on weekly basis. The main objective or aim of the company is to deliver
quality products to customers that add value to the company image in Australian market. The
focus of the company is on delivering value to their customer at minimum waste and by
valuing each and every aspect of the community. Coles to minimize its negative impact on
the community and society ensure to conduct various corporate social responsibility activities
(Coles, 2018).

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Literature Review
What is CSR (Corporate Social Responsibility)
According to (Costanza, et al 2016) an organization grows bigger and better, it
employs more and more resources of the society. In order to maintain the balance and to
achieve sustainable development a CSR model is implemented by the corporates and the
organizations. CSR policy is a self-regulated model that helps the firms to be accountable on
the social grounds.
In opinion of Batty Cuskelly & Toohey (2016), CSR is important for the community;
it is also valuable for the company as well as the entire industry. In the year 2010, the
International Organization for Standardization published a set of benchmarks in order to help
in implementing the Corporate Social responsibility. On the other hand in opinion of Hafez
(2016), business runs in society and use resources of society so it is their key responsibility to
take accountability of their negative actions and for that companies conduct CSR activities.
“It is a regulatory mechanism that monitors the operations of the firm and ensures that every
activity is conducted according to the rules and regulations of the authorized bodies”
(WECU, 2017).
In the perception of Wang Hsieh & Sarkis (2018), corporate social responsibility
(CSR) is a strategy that helps the companies to build competitive advantage in the market
against its competitors. Companies conduct CSR activities to achieve the goal of positive
impact on the society and for maximizing the value of shareholders wealth and improve the
value of owners, business, shareholders, employees and stakeholders. The concept of
corporate social responsibility is based on some theories that are stakeholder theory, rights
theory, deontological theory and theory of trusteeship. Stakeholder’s theory state that all the
people who are affected by the company’s action are needed to be take care of and that

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affected people are considered as stakeholders and the concept of CSR revolves around this
theory Jamali & Karam, (2016), According to the view, The stakeholders or the person who
are most affected by the actions and ideas of company are; owners, workers, customers,
suppliers, creditors, government entities, local businesses and community. In the below
sections the positive and negative impact of CSR activities on these stakeholders are
explained according to Schmidt-Traub, Kroll, Lafortune & Fuller (2018), and mainly they are
classified as workers, shareholders, community, suppliers and customers. The stakeholders
get affected by company actions in positive and negative way and to reduce the adverse effect
CSR plays an important role.
Positive and Negative Impact of CSR
The Corporate social responsibility tends to reduce the gap between the corporations
as well as customers. A bond of trust is formulated due to the adoption of the corporate social
responsibility. The impact of the CSR on the consumer can be of the quality of the product
and the distorting facts due to the high level of competition. This also means the companies
feel free to share the information with the customers and also educates the customers about
the importance of the CSR (Wang, Hsieh & Sarkis, 2018).
Woolworths and Coles CSR comparison
CSR of Woolworths Group
As per the Sustainability Report of the Company, the concept of the CSR for them revolves
around the following:
1. The CSR of the company tends to better while providing the safety and the
security along with the responsibly sourced products.

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2. It is relevant to create teams for the overall betterment of the organization by
providing a workplace that allows the diversified culture (Hawrysz, 2016).
3. The communities are also benefitted through the sharing of the information at the
ground level.
4. CSR is also positive for the suppliers by facilitating the strong relationships.
5. Better for shareholders – By delivering sustainable value creation in their
business.
The crux lies in “Humanity”. The Company believes that if there is enough
transparency, honesty, ethics and a good intent in their working, it will benefit to both the
company and all of its stakeholders.
The Sustainable Development Goals is mandatory for all the countries – poor, rich
and middle-income – in order to promote the prosperity across the planet. They perceived
that the goals must be fulfilled and complied with in order to have a competitive advantage
over the other organizations (Jamali & Karam, 2016). Woolworths has been successful in
accomplishing some of goals, as per the Sustainability Report.
In the view of Viveros, (2016), the company strives to attain the goal of Gender
Equality through creating a friendly environment, rather than distributing it on the basis of
the culture. Thus, the company ensures that there is no discrimination based on the gender of
an individual. The Woolworths Group has been successful in achieving growth through
diversity, people coming from different backgrounds and cultures; they are able to achieve
quality in their work with their vast exposure and learning. This is believable as their score on
voice of Team engagement was 82% (Rafiq, Atiq & Yunis, 2016). By supporting Aboriginal
and Torres Strait Islander employment, the company reduced the factor of the inequality and
promoted the concept. The continuous measures are taken to make the program of the Zero

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Hunger successful and to provide the relief to the ones who are need with the help of the
Food bank. By following the approach of “No more plastic bags”, the company has
significantly they have taken 4 major steps:
1. Soft plastics recycling program
2. NSW Container Deposit Scheme
3. Packaging with the quality and Recycling
4. Decrease in the use of the plastics.
As per the Sustainability Report of 2018, the refrigerant leakage percentage was 4% (above
2015 levels) (Woolworth’s Group, 2018).
CSR of Coles
Coles is the competitor of Woolworths in retail industry in Australia. The corporate
social responsibilities that the company followed are related to the sustainability and
development of society considering issues related to inequality, diversity and environment.
Coles provide training to their customers and suppliers to save the environment under CSR
strategy. Further, Cole’s supermarket implemented strategies like new technologies to reduce
pollutions and changed its logistic system to reduce the impact of pollution on society.. Coles
also contributed in social works by providing funding to hospitals and child care institutions.
Coles take responsibility of managing the environment and take the social impact on a serious
note. Coles focus on responsible sourcing, ethical sourcing and environment. Responsible
sourcing includes “Animal Welfare Policy sets out our expectations regarding the treatment
of animals and aquaculture species in the meat, fresh produce and grocery product global
supply chains for all Coles Brand products” (Coles, 2018).

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Critical Evaluation
From the above information on Woolworths CSR activities and activities conducted
by its competitor Coles it is analyzed that all the companies in retail segment are investing in
corporate social responsibilities activities and understand the importance of CSR activities
and its positive impact on the society. Further it is analyzed that Woolworth’s investment on
sustainable development is more than its competitors and this give the advantage to the
company in the society. From further comparison, it is evaluated that because of more focus
on human rights and environmental issues Woolworth is getting the advantage of conducting
these activities and it build the company’s image in front of its stakeholders that are
customers, employees and suppliers. Coles CSR strategies are seemed to be less effective
than Woolworths and Coles is lacking in opting the sustainable techniques and strategies.
Coles also opted for energy saving structure that helped the company to improve its brand
image in the market whereas Woolworths lacks in this and does not adopt any structure that
help the company to save energy and but all the companies know well about the positive and
negative impact of CSR on the stakeholders and importance of CSR strategies on their
business and that is the reason companies show more CSR activities than what they are doing
in practical way (CSR TIMES, 2018).
Literature Review on Positive Impacts and negative impacts
In opinion of Coles (2018), the corporate social responsibility tends to reduce the gap
between the corporations as well as customers. A bond of trust is formulated due to the
adoption of the corporate social responsibility. This also means the companies feel free to
share the information with the customers and also educates the customers about the
importance of the CSR (Wang, Hsieh & Sarkis, 2018). Further, In the perception of
Petrenko, Aime, Ridge & Hill, (2016), with the help of the CSR policies the company is able
to enhance the productivity of the employees. The CSR activities elaborate the self-image;

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aims to satisfy the corporate as well as individual needs and moreover build a strong
relationship. Not only has this CSR also helped in developing and promoting the citizenship
and it seems to be the crucial part for the purpose of the sustainability. Companies like
Wesfarmers and Woolworths are helping the communities by shaping their future in the
better manner. The companies also make sure that the communities are benefitted from the
CSR policy attempted by the company (WECU, 2017).
Negative Impacts
The impact of the CSR on the consumer can be of the quality of the product and the distorting
facts due to the high level of competition. According to the perception of Viveros, (2016),
due to the existence of the CSR policies, at times the cost of the CSR can be negative and can
bring the negative environment among the employees. Further in the view of WECU, (2017),
a company's management has the duty towards its investors, where there is a direct
opposition from the CSR, since the responsibility of employees to investors is mainly to
maximize the profits (Woolworth’s Group, 2018).

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Conclusion
Thus Corporate Social Responsibility (CSR) is majorly how the companies truly work
on their operations and thereby delivers the overall impact on the customer, society as well as
management. Hence, it can be ascertained that Woolworth showed interest for the society for
the sake of the suitable environment and actually investing in conducting various activities
that benefits the environment and society. Also it can be observed that instead of the statutory
obligation the company is taking the initiatives for the welfare of the employees, families and
the community and society at large. On other side Coles is not that impactful in CSR
activities and contribute less than Woolworth through that it can be said if a company
chooses to follow the way of CSR, it will integrate ethical concerns in its activities and in its
interaction with all the stakeholders. Hence, overall CSR is necessary and required to be
sustainable.
.

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References
Batty, R. J., Cuskelly, G., & Toohey, K. (2016). Community sport events and CSR
sponsorship: examining the impacts of a public health agenda. Journal of sport and
social issues, 40(6), 545-564.
Costanza, R., Daly, L., Fioramonti, L., Giovannini, E., Kubiszewski, I., Mortensen, L. F., ...
& Wilkinson, R. (2016). Modelling and measuring sustainable wellbeing in
connection with the UN Sustainable Development Goals. Ecological Economics, 130,
350-355.
CSR TIMES, (2018). Corporate Social Responsibility and the Society. Retrieved from
http://www.csrtimes.com/community-articles/corporate-social-responsibility-and-the-
society/205
Coles. (2018). Corporate Social Responsibility and Sustainability. Retrieved from
https://www.coles.com.au/corporate-responsibility/sustainability
Hafez, H. M. (2016). Corporate social responsibility and firm value: an empirical study of an
emerging economy. Journal of Governance and Regulation/Volume, 5(4).
Hawrysz, L. (2016). Social aspects of CSR reporting in Polish banks listed on the Warsaw
stock exchange. Political Science, Law, Finance, Economics & Turism, Proceedings
of the SGEM.
Jamali, D., & Karam, C. (2016). CSR in developed versus developing countries: A
comparative glimpse. Research handbook on corporate social responsibility in
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Lu, Y., Nakicenovic, N., Visbeck, M., & Stevance, A. S. (2015). Policy: Five priorities for
the UN sustainable development goals. Nature News, 520(7548), 432.
Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or
CEO narcissism? CSR motivations and organizational performance. Strategic
Management Journal, 37(2), 262-279.
Rafiq, M., Atiq, M., & Yunis, M. S. (2016). The Impact of Corporate Social Responsibility
News Announcements on Shareholders' Wealth. FWU Journal of Social
Sciences, 10(2), 99.
Schmidt-Traub, G., Kroll, C., Lafortune, G., & Fuller, G. (2018). SDG Index and Dashboards
Report 2018. Global responsibilities. Implementing the goals.
Solís, P., McCusker, B., Menkiti, N., Cowan, N., & Blevins, C. (2018). Engaging global
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The case of open mapping for malaria prevention. Applied geography, 98, 143-155.
Viveros, H. (2016). Examining stakeholders' perceptions of mining impacts and corporate
social responsibility. Corporate Social Responsibility and Environmental
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Wang, Z., Hsieh, T. S., & Sarkis, J. (2018). CSR performance and the readability of CSR
reports: too good to be true?. Corporate Social Responsibility and Environmental
Management, 25(1), 66-79.
WECU, (2017). Corporate Social Responsibility Strategy. Retrieved from
https://www.wecu.com.au/about-us/csr-strategy/

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Woolworth’s Group, (2018). Sustainability Report. Retrieved from
https://www.woolworthsgroup.com.au/icms_docs/195398_2018-sustainability-
report.pdf
Wesfarmers, (2018). Sustainability Report. Retrieved from
https://www.wesfarmers.com.au/util/news-media/article/2018/09/16/2018-
Wesfarmers-sustainability-report-released